Circuit City seeks incentives for wind-down
Business Law
Circuit City Stores Inc. is asking a U.S. Bankruptcy Court judge to allow it to give incentives to executives and other workers to stay with the company during the wind-down process, according to court filings.
The company said the bonuses are needed to dissuade the 154 employees from leaving before what was the nation's second-largest consumer electronics retailer closes for good.
Employee turnover threatens the wind-down plan and the company's ability to "maximize value for their estates and stakeholders," Richmond-based Circuit City said in the filing.
Circuit City has already had some key employees leave, including former chief financial officer Bruce H. Besanko, who will start in a similar role at OfficeMax Inc. on Feb. 16.
The company filed for Chapter 11 bankruptcy protection in November as it faced pressure from vendors, heightened competition and waning consumer spending. Last month Circuit City announced it would liquidate its 567 U.S. stores, cutting more than 34,000 jobs.
Going-out-of-business sales should last through March, after which the stores will be closed. A small staff will keep working at the corporate office through the process.
Under the company's proposal, 16 executives would split up to $2.3 million if they achieve specific target tasks such as staying within the wind-down budget and obtaining the sale of Circuit City's Canadian and Internet assets. The remaining non-managerial workers would share no more than $1.62 million.
Related listings
-
Exxon Mobil sets record with $45.2 billion profit
Business Law 01/30/2009Exxon Mobil Corp. on Friday reported a profit of $45.2 billion for 2008, breaking its own record for a U.S. company, even as its fourth-quarter earnings fell 33 percent from a year ago.The previous record for annual profit was $40.6 billion, which th...
-
Fallout begins after dismal holiday season
Business Law 12/30/2008The fallout from the horrific holiday season for retailers has begun, with the operator of an online toy seller filing for bankruptcy protection and more stores are expected to do the same — meaning more empty storefronts and fewer brands on store sh...
-
Fed designates CIT Group as bank holding company
Business Law 12/23/2008The Federal Reserve on Monday said it has approved CIT Group Inc. as a bank holding company, clearing a key hurdle for the firm to bolster its resources with loans and support from the government's financial rescue fund.The Fed's decision means the N...
New York Commercial Litigation Law Firm - Woods Lonergan PLLC
Founded in 1993 by Managing Partner James F. Woods, Woods Lonergan PLLC has built a strong reputation as a resourceful and industrious firm that provides clients with clear, concise, and straightforward answers to their most challenging legal issues. Partner Lawrence R. Lonergan, who joined the firm in 2008, has been a friend and colleague to Mr. Woods for over 40 years and shares the same business philosophy. Woods Lonergan PLLC’s collective experience and expertise enables the firm to expeditiously and effectively analyze the increasing challenges clients face in an evolving business and legal world, in many instances, avoiding unnecessary time and expense to our clients. Our mission is simple: provide cutting-edge expertise and sound advice in select areas of the law for corporate and business clients. We thrive on providing each client with personalized attention, forceful representation, and a collaborative team effort that embraces collective knowledge.